Frøy ASA to launch initial public offering on Oslo Stock Exchange

Frøy ASA to launch initial public offering on Oslo Stock Exchange 1

OSLO: Frøy ASA announced its intention to launch an initial public offering of its shares and to apply for a listing on the Oslo Stock Exchange.

Frøy is a Norwegian provider of business-critical salmon farming services with an operational track-record of more than 20 years. The Group’s service offering includes installation and maintenance of salmon farming sites, biological treatments and transportation of live fish.

The service offerings build on Frøy’s fully-integrated platform of competence and infrastructure services, and are delivered via a modern and well invested fleet of wellboats, service and transport vessels. The Group has more than 670 specialized aqua service professionals and 13 local offices along the Norwegian coast.

The Group is the result of a merger between Frøy Gruppen AS (and subsidiaries) and one of NTS ASA’s subsidiaries, effective from 3 April 2020. Frøy has since been reorganized to include all the aqua service businesses within NTS ASA.

The respective companies carry substantial in-house competence, being led by management groups with significant seafood sector experience. The merger positioned Frøy as the largest fully-integrated provider of competence and infrastructure services to the Norwegian aquaculture industry.

The Company’s vision is to take advantage of the rapidly growing aquaculture industry by being the preferred provider of efficient and sustainable aqua services to salmon farmers.

Frøy’s board of directors is of the opinion that the Offering and listing of the Company’s shares on the Oslo Stock Exchange represents an important step in the development of the Company as it will (i) enable the Group to take an active role in developing and realizing the growth potential in the aqua service industry, with NTS ASA serving as an industrial sponsor and long-term owner, (ii) support the Group’s ambition to expand scale and scope of operations in Norway by building on existing client relationships and expand into new clients, and (iii) allow for potential international expansion by building on the Norwegian track-record and expanding into new salmon farming regions.

Helge Gåsø, Chief Executive Officer of Frøy, commented: “Over the last 20 years Frøy has developed into a market leading aqua service provider to the Norwegian salmon farming industry. Going forward, we see several paths for continued growth for Frøy, and believe an IPO of Frøy is now a natural next step to enable the next phase of the company´s development.

We see continued strong demand for servicing the aquaculture site infrastructure and biomass, and look forward to continuing our hard work to meet the needs of our customers. With the backing of NTS ASA as a long-term owner, I trust we will continue to be the integrated solutions partner of choice for the fast growing aquaculture industry.”

The Offering is expected to comprise an offering of new shares in the Group to raise gross proceeds of approximately NOK 1.0bn. In addition, the Offering is expected to include a sale of shares by the existing shareholder, NTS ASA.

The net proceeds from the Offering received by the Company will be used to establish a sustainable long-term financial platform, to pursue growth opportunities, organizational development and general corporate purposes, in line with the Company’s strategy.

Subject to receiving the relevant approvals from the Oslo Stock Exchange and the Norwegian Financial Supervisory Authority, as well as prevailing equity capital market conditions, the Company is expected to have its first day of trading on the Oslo Stock Exchange in Q1 2021. Further announcements relating to the Offering will be made in due course.

Danske Bank, Norwegian branch, Nordea Bank Abp, filial i Norge, and SpareBank 1 Markets are acting as Joint Global Coordinators and Joint Bookrunners in the Offering (together the “Joint Global Coordinators”). Arntzen de Besche Advokatfirma AS is acting as legal advisor to the Company. Advokatfirmaet Thommessen AS is acting as legal advisor to the Joint Global Coordinators.

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